Nine in Arizona accused of defrauding pandemic relief program
PHOENIX (AP) — Nine people in Arizona have been indicted on allegations they fraudulently obtained more than $23 million in government pandemic assistance.
Federal prosecutors allege Jason Coleman, 40, and Kimberly Coleman, 38, of Mesa conspired to prepare and submit about two-dozen fraudulent applications seeking $30 million in loans under the Paycheck Protection Program. They received $13 million from 10 of their applications, according to prosecutors, who say the couple submitted fake employment data and fictitious payroll.
Meanwhile, a grand jury also issued eight other indictments of seven people from the Phoenix area accused of conspiring to defraud the pandemic relief program.
The PPP program gave employers billions of dollars in low-interest loans that would be entirely forgiven if the money was used for specific purposes such as payroll costs. The program was created early in the COVID-19 pandemic as officials ordered many businesses to close and urged people to stay home.
Jason and Kimberly Coleman pleaded not guilty on Wednesday to charges of conspiracy, bank fraud, wire fraud and transactional money laundering. A magistrate ordered both detained pending trial, ruling they are a flight risk and a danger.
